Why ASML Stock Is Plummeting Today

Today, ASML’s (ASML) shares are experiencing significant drops due to selling pressure, following their latest earnings release. As of 3:20 p.m. Eastern Time, the company’s stock price had fallen by 7.8%. Earlier in the day, the decline reached a maximum of 11.2%.

This morning, ASML revealed their Q2 financial results surpassing analyst predictions, showcasing increased sales and earnings. However, even with a robust Q2 performance, the company offered tentative future projections, leading to investors selling off their shares.

ASML stock sinks despite strong Q2 results

In the second quarter, ASML reported a net income of approximately 2.66 billion US dollars and revenue of around 8.95 billion euros. This surpassed analyst expectations of a profit of 2.04 billion euros on sales of 7.52 billion euros. Sales increased by nearly 23% compared to the same period last year, and the company achieved a gross margin of 53.7%. The tech firm has been experiencing demand growth due to equipment sales for AI chip manufacturing. However, the management expressed a cautious view regarding next year’s performance.

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What’s next for ASML?

Following an impressive second-quarter showing, ASML anticipates a 15% increase in annual revenue and a gross margin of around 52% for this year. However, despite these figures potentially triggering a growth in valuation, management has expressed uncertainty about the business’s expansion prospects for next year. Due to tariffs, broader economic uncertainties, and geopolitical risks, ASML is hesitant to predict a sales increase in 2023. Consequently, investors are offloading their shares due to the downbeat forecast.

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2025-07-16 22:45